July 2020

It is likely that over the next few weeks, Britain will leave the European Union. As the push and pull over a Brexit deal continues, traders need to be Brexit ready. At present, the UK government is trying its best to ensure that any new controls or regulations do not interrupt the current trade flows. Despite these efforts, some changes are bound to happen. Therefore, it is extremely important for traders to know about the potential changes in export compliance regulations.

Exports are defined as goods and services that are produced in one country and purchased in another. On the other hand, re-export refers to the shipment or transmission of a particular imported item to a different country. The US is one of the largest re-export markets in the world, with an estimated size of $200 billion. Examples of items that are commonly re-exported include fisheries, apparel, and technology products. However, traders are often unaware of the regulations that govern the re-export process. One such regulation pertains to the extra territorial jurisdiction of the US authorities. This implies that the US government has the ability to exercise authority beyond its boundaries in some cases. This article will help in developing a better understanding of the re-export controls that govern the re-shipment of US goods in the UK and European market.

One of the biggest factors in strengthening your business’s reputation is ensuring the presence of a strong compliance program. Companies with efficient compliance programs are equipped to uphold internal policies and practices that ensure maximum security. These programs examine set rules regarding their industry in order to implement certain procedures, both internally and externally.

A company that uses a global trade management software system can reduce the costs, risks and delays associated with manual compliance and tracking efforts.

If your company imports or exports physical goods or digital products, or conducts global e-commerce, there is a strong chance that you will need some form of global trade management (GTM) system. Despite this being an essential requirement, companies of all sizes still try to manage their global trade and logistics manually, with employees having to resort to dealing with the arduous task of analyzing spreadsheets packed full of data.

Integration of national economies contributing to globalization has been one of the most important developments of the last century and led to tremendous growth in trade between countries. Exports today are more than 4,000-times larger than they were a century ago. New technologies in this modern age have made the world a more accessible place than ever before, drastically increasing complexity in international trade.

No one can predict what will happen after October 31st,  and with the situation remaining fluid the impact that upcoming UK sanctions will have on business remains unknown. This uncertainty has resulted in many organisations failing to prepare for the impending exit from the European Union and many are finding that they may not have systems in place or resources available in case of a “No Deal” scenario.

National Oilwell Vargo Inc. (NOV), a houston based drilling company, agreed to pay a criminal fine of $25 million to the Department of Justice (DOJ) under the Non-Prosecution Agreement entered with the U.S. Attorney’s Office for the Southern District of Texas. This was a result of a settlement reached with DOJ, DOC, OFAC for violating trade sanctions by selling and exporting goods to Iran, Cuba and Sudan starting from the year 2002 leading upto 2009.

American Shipper discussed in its latest Export Benchmark Report the main concerns of Exporters. Not very surprising small & medium sized as well as large shippers have in common that the increase of costs of compliance are one of their main concerns. For large shippers this is equally concerning as the increased import enforcement at destinations and the delays at customs.

A recent study from American Shipper showed that 70% of manufacturers and 80% of retailers use automation for the Export compliance. Those numbers are steadily increasing in the past 7 years this study has been performed.

With the latest developments such as the implementation of the ACE (Automated Commercial Environment) or the new drawback law, more and more importers choose self-filing over outsourcing. In their latest Import study American Shipper found out that the percentage of self-filing importers nearly doubled between 2014 and 2016.